GREY:VFGGF - Post by User
Comment by
canoe2000on Feb 21, 2013 6:32pm
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Post# 21025563
RE: from IV board
RE: from IV board In terms of the size of our resource, our reserve evaluators have come up with their best estimates of 580 million barrels in place. If we applied just a modest recovery factor of 10%, that’s 58 million barrels on what our base was 8.3 million barrels. A typical barrel in our reserve report is worth between $30 and $38, so in simple math – it shows how big it can get to. But that takes time and there is also a discounting of that time frame as well, but the resource is massive, particularly for a company our size – it’s really, really big.
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Am I reading this right. That is about 2 billion at 10% recovery. If it is 25%, then it is 5 billion? So we have a potential payback at some point of 8 to 20 times our current share value?